Sensex, Nifty hover near record highs ahead of US economic data

Sensex, Nifty hover near record highs ahead of US economic dataIndian shares steadied near record highs on Tuesday, ahead of a raft of data that may determine how deeply the US will cut interest rates later this month.

The Nifty 50 index was largely unchanged at 25,259.3 points, while the S&P BSE Sensex dipped 0.1 per cent to 82,490.79.

The blue-chip Nifty 50 gained 4.7 per cent in a thirteen-session rally, its longest ever until Monday. Both the benchmarks hit lifetime highs in the previous session.

"There are not many positive local levers for markets to sustain highs," said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management.

All eyes are now on US economic data, including US ISM manufacturing survey due later in the day and particularly jobs data on Friday, that could provide cues on the extent of Federal Reserve rate cuts.

US personal consumption expenditure data last week showed an uptick, raising expectations that the Fed was likely to opt for a smaller rate cut at its September meeting.

Markets are fully pricing at least 25 basis-point rate cut at the September meeting. Expectations for a 50 basis-point reduction, however, fell to 31 per cent from 32 per cent last week.

Interest rate cuts in the US tend to bring in more foreign fund inflows into emerging markets like India.

On the day, nine of the 13 major sectoral indexes were trading in the red, though losses were marginal.

The pharma index was the biggest sectoral gainer, rising 0.8 per cent, while heavyweight financials and the energy index fell about 0.3 per cent each.

Among individual stocks, Hindustan Composites surged 6.8 per cent on a deal to acquire shares in food delivery firm Swiggy.

Solar modules maker Premier Energies' shares more than doubled in debut trade.